Must You Pay Taxes in the United States if You Do Business There?

September 1, 2001

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Luc Pariseau
Partner, Lawyer

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M’abonner

May 6, 2026

Eight partners recognized as leaders in Canada for their expertise in infrastructure, according to Lexpert

On May 6, 2026, Lexpert recognized the expertise of five of our partners in its 2026 Lexpert Special Edition:Infrastructure. Laurence Bich-Carrière, Jean-Sébastien Desroches, Christian Dumoulin, Nicolas Gagnon, Édith Jacques, Marc-André Landry, Ouassim Tadlaoui and André Vautour now rank among Canada’s leaders in supporting economic players in the infrastructure industry. Laurence Bich-Carrière, is a member of the Quebec and Ontario Bar Associations, Laurence Bich-Carrière practices within the Litigation and Dispute Resolution group, in a versatile civil and commercial litigation practice specializing in complex litigation (class actions, appeals, extraordinary remedies, private international law). Jean-Sébastien Desroches practises business law and focuses primarily on mergers and acquisitions, infrastructure, renewable energy and project development as well as strategic partnerships. He has had the opportunity to steer several major transactions—complex legal operations, cross-border transactions, reorganizations, and investments—in Canada and at an international level on behalf of Canadian, American, and European clients and international corporations and institutional clients in the manufacturing, transportation, pharmaceutical, financial, and renewable energy sectors. Christian Dumoulin is a partner in the firm’s Business Law Group. He served as Managing Partner of the Sherbrooke office from 2015 to 2023 and sat on the firm’s Board of Directors from 2015 to 2017, and again in 2024. He specializes in mergers and acquisitions, commercial law and real estate law, and acts as a business and strategic advisor to clients of all sizes. Recognized for his rigour and practical approach, he supports clients in complex transactions (reorganizations, financings, sales and acquisitions, shareholder disputes). He has also been advising on infrastructure projects for more than fifteen years, including public-private partnerships, as well as on all aspects of commercial real estate law. Nicolas Gagnon focuses his practice on construction law and suretyship. He counsels contractors, public and private sector clients, professional services firms as well as surety companies at every stage of construction projects. He advises clients on the public bidding and procurement processes and participates in the negotiation and drafting of contractual documents involving various project delivery methods, such as public-private partnership projects and design, construction, financing and maintenance contracts. In addition to advising various construction industry stakeholders on construction management and any claims that may arise, he also assists them with dispute resolution processes. Édith Jacques is a partner in the Business Law Group in Montréal. She specializes in mergers and acquisitions and commercial and international law. Édith acts as strategic business advisor for medium to large private companies. Marc-André Landry is a member of the Litigation and Conflict Resolution group and focuses his practice on commercial litigation. He frequently assists his clients in resolving their disputes through negotiation, mediation or arbitration, or before the various courts of law. Over the years, he has represented businesses in many sectors, including construction, real estate, renewable energy, conventional energy, new technologies, financial services and pharmaceuticals. Ouassim Tadlaoui is a partner in the firm’s Litigation and Dispute Resolution Group and focuses his practice on banking litigation, restructuring, bankruptcy and insolvency, as well as construction surety. He represents chartered banks and other financial institutions and alternative lenders as creditors, as well as certain debtors, in bankruptcy and restructuring proceedings. He also represents and advises surety companies, as well as national and international businesses, in insolvency, bankruptcy and restructuring matters in the construction industry. André Vautour practises corporate law and commercial law, and is specifically interested in corporate governance, strategic alliances, joint ventures, investment funds, and mergers and acquisitions of private companies. He also practises technology law (drafting technology development and transfer agreements, licensing agreements, distribution agreements, outsourcing agreements, and e-commerce agreements). About Lavery Lavery is the leading independent law firm in Quebec. Its more than 200 professionals, based in Montréal, Québec City, Sherbrooke and Trois-Rivières, work every day to offer a full range of legal services to organizations doing business in Quebec. Recognized by the most prestigious legal directories, Lavery professionals are at the heart of what is happening in the business world and are actively involved in their communities. The firm’s expertise is frequently sought after by numerous national and international partners to provide support in cases under Quebec jurisdiction.

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November 6, 2025

Federal Budget of November 4, 2025: Enhancements to the Critical Minerals Exploration Tax Credit and renewal of the Mineral Exploration Tax Credit

The federal budget presented on November 4, 2025 (the “Budget”), proposes a significant change to the Critical Mineral Exploration Tax Credit (CMETC). As a reminder, the CMETC is equal to 30% of “specified mineral exploration expenses”1 incurred in Canada that a company has renounced to flow-through share investors. Critical minerals currently eligible for the CMETC The critical minerals currently eligible for the CMETC are nickel, cobalt, graphite, copper, rare earth elements, vanadium, tellurium, gallium, scandium, titanium, magnesium, zinc, platinum group metals, uranium and lithium (including lithium from brine deposits). Critical minerals added to the list The Budget proposes to expand the definition of “critical mineral” to include the following additional critical minerals: bismuth, cesium, chromium, fluorspar, germanium, indium, manganese, molybdenum, niobium, tantalum, tin and tungsten. Impact of this measure on mining exploration expenses The measure will make the 30% CMETC apply to exploration expenses relating to these new types of critical minerals that a mining exploration company would renounce to flow-through share investors. The measure will cover exploration expenses renounced under flow-through share agreements entered into after Budget Day and on or before March 31, 2027. The Budget also confirms the renewal of the Mineral Exploration Tax Credit until March 31, 2027 (METC). Please feel free to contact our professionals for more information Canadian exploration expenses incurred by a company after April 7, 2022, as part of mineral exploration activities conducted from or above the surface of the earth targeting mainly critical minerals.

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October 22, 2025

A judgment rendered by a civil court in Quebec may be valid for life

Executing a judgment in Quebec In Quebec, a bailiff can proceed with the forced execution1 of a judgment rendered by a civil court, such as the Court of Québec or the Superior Court,2 as soon as it becomes final,3 in accordance with article 656 of the Code of Civil Procedure (C.C.P.). Execution process The execution process begins when the creditor (the party having won the case) sends their instructions to a bailiff, who transcribes them into a notice of execution. The notice is then filed in the Court record and can be consulted free of charge at the court office or on SOQUIJ, for a fee. Prescription and renewal of debt A debtor who has been ordered by judgment to pay a sum of money should know that the debt can be recovered for 10 years, and that if the creditor executes the judgment in those 10 years but the debt goes unpaid, a new 10-year prescription period will start to run and the debt will remain owing. Article 2924 of the Civil Code of Québec (C.C.Q.) states that “[a] right resulting from a judgment is prescribed by [is extinguished after] 10 years if it is not exercised.” A creditor who has been unable to execute their judgment within the 10-year prescription period has the possibility of interrupting prescription by filing a notice of execution and making sure to serve it on the debtor, in accordance with article 2892 para. 2 C.C.Q. Clearly, a well-informed creditor will be able to indefinitely renew the prescription period to execute their judgment, until the debt has been paid in full. To constitute a valid interruption, the notice of execution must absolutely be filed with the court and be served on the debtor, but the subsequent seizure need not be conclusive. Jurisprudential confirmation Mohawk Council of Kanesatake v. Sylvestre This method of interrupting the extinctive prescription of rights resulting from a judgment has just been confirmed in Mohawk Council of Kanesatake v. Sylvestre, 2025 SCC 30: [62] ... The filing and service of the notice, itself part of the judicial application for seizure, interrupted prescription in 2016 pursuant to art. 2892 C.C.Q. Here is an excerpt of the Honourable Court’s summary: ... [F]iling and serving a notice of execution counts as a judicial application that interrupts the 10-year prescription period... It did not matter that the bailiff later found nothing to be taken and suspended the seizure. It also did not matter that the bailiff did not notify the debtor that the seizure had been suspended. ... [T]he 10-year period exists to ensure people act on time and to bring stability to debtor-creditor relations, but it should not punish creditors who take the right steps before the deadline. With this decision, the Court gave clarity and certainty to both creditors and debtors about how judgment debts can be enforced and what types of events can interrupt prescription. Additional points Prescription is interrupted when a notice of execution is filed with the Court and served on a debtor by bailiff. The notice of execution may include several seizure options, and the bailiff may attempt more than one, depending on the case. An unsuccessful seizure does not result in the “judicial application” being dismissed. If this is the case, the notice of execution remains valid and has the effect of interrupting prescription, such that a new 10-year period starts to run. There is no requirement for the bailiff to draw up minutes of a nulla bona if no property is seized. The bailiff can prepare minutes to certify that no property was seized, but there is no such requirement under the C.C.P., and the debtor suffers no prejudice if this is not done. The 10-year prescription period is not interrupted if the debtor opposes the execution and the Court allows such opposition. Conclusion This ruling by the Supreme Court of Canada confirms that the filling and service of a notice of execution maintains the validity of a judgment for a renewable period of 10 years. The term “execution” means that a party having succeeded in a judgment may choose one or more ways to compel the other party (the debtor) to pay what is owed to them by seizing immovable property, movable property, bank accounts, wages, and so on. Article 656 para. 2 C.C.P. states that “[e]xecution may be forced if the debtor refuses to comply voluntarily and the judgment has become final.” Article 566 C.C.P., which deals with the recovery of small claims, states that a “judgment creditor may themselves draw up the notice of execution if the only execution measure is seizure of the debtor’s income in the hands of a third person”, and section 13.1 of the Tax Administration Act states, among other things, that the Agence du revenu du Québec may prepare and file a notice of execution and then seize a sum of money or income in the hands of a third person, but that it must hire a bailiff in other cases. The term “final” in this article means that the case is over, that the judgment can no longer be appealed and that the creditor can force a debtor to comply with the judgment’s orders.

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June 25, 2025

Provincial Budget 2025: Significant Increase in Public Utility Tax (PUT) Rates

The PUT is a crucial component of provincial finances and has a significant impact on the operating costs of the many companies providing essential services. The PUT was introduced in Quebec in fiscal 2004–2005 to replace the municipal property tax on specific infrastructure used by companies in certain key sectors. Such infrastructure includes telecommunications network facilities, gas distribution systems, and energy production, transmission and distribution systems. The latest Quebec budget provides for gradual changes, including an increase in applicable rates over the next decade. The rate applicable to electricity production, for example, will rise from 0.7% in 2027 to 1.5% by 2035. However, this increase does not apply to transmission and distribution operations. The rate applicable to telecommunications will also rise from 0.7% to 1.5%. Lastly, the rate that applies to gas distribution will rise from 0.75% to 1.5% by 2035 on the first 750 million dollars in revenue. The portion of revenue exceeding that amount will be subject to a 1.5% rate as of 2027. As part of the changes introduced in the latest budget, the PUT exemption has been expanded to include certain municipal or public bodies performing government functions in Canada, as well as the corporations owned by such entities. A PUT exemption will also be granted on a pro rata basis to entities operating jointly with other non-eligible entities, based on the distribution of voting rights or income and loss shares. An anti-avoidance rule has been established to ensure that such distribution remains reasonable and in keeping with the spirit of the law. These adjustments apply as of calendar year 2025, with declaratory provisions covering the aforementioned exemptions. Through such provisions, companies having met the criteria set out for previous years should be able to claim back the PUT. To do so, they will have to submit their application by June 30, 2026, or the deadline by which they are required to file their tax returns. While it is true that this measure aims to ensure that the PUT reflects the changing infrastructure needs of public utility companies and to optimize their tax contribution, the impact it will have on stakeholders in the targeted sectors will be considerable, and they will have to adjust operations to cope with future increases. Read our first bulletin on the 2025 provincial budget titled “Provincial Budget 2025: New Refundable Tax Credit for Research, Innovation and Commercialization (CRIC)” Read our second bulletin on the 2025 provincial budget titled “Provincial Budget 2025: Major Changes to the Tax Credit for the Development of E-Business (TCEB)”

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June 9, 2025

Provincial Budget 2025: Major Changes to the Tax Credit for the Development of E-Business (TCEB)

In this bulletin, we will be discussing the TCEB as part of our series on the 2025 Quebec budget and corporate taxation. This particular tax credit aims to boost innovation and competitiveness in the digital marketplace by providing strategic tax assistance to businesses specializing in information and communication technologies. It was introduced to spur the growth of Quebec’s technology sectors through tax incentives granted to companies developing or integrating e-business solutions. Before the 2025 Quebec budget reform, the TCEB comprised a 24% refundable tax credit, coupled with a 6% non-refundable tax credit. In 2024, the government began adjusting TCEB rates as part of the updated economic priorities, gradually reducing the refundable credit to 20% by 2028 and increasing the non-refundable credit to 10%. New adjustments were announced in the 2025 provincial budget to ensure that the incentives align more closely with the changing technological landscape, in particular by shifting the focus to the integration of recent emerging technologies, such as artificial intelligence (AI) and data processing and hosting. The new rules provide that only activities that incorporate artificial intelligence functionalities in a significant way will be eligible for the TCEB going forward. In addition, data processing and hosting services (NAICS 51821) have been added to the list of eligible activities, which shows the increasingly important role they play in today’s technological landscape. However, activities aimed at maintaining or upgrading information systems and technological infrastructure have been removed from the list, refocusing the program on cutting-edge technologies. Businesses engaged in inter-company outsourcing, mainly with subsidiaries of foreign companies, are particularly affected by the changes, in that credit rates will be reduced by half if the proportion of such outsourcing reaches 50% or more. The idea is to encourage those businesses to contribute more directly to the local economy and technological innovation in Quebec. The changes will apply to tax years beginning after December 31, 2025, but companies have the option of electing to apply them to tax years beginning after the budget presentation, provided the election is made before the end of the ninth month following the deadline by which they are required to file their tax returns. Read our first bulletin on the 2025 provincial budget titled “Provincial Budget 2025: New Refundable Tax Credit for Research, Innovation and Commercialization (CRIC)”

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